SAMWUMED Admits to Bankruptcy

Date: 10 April 2019

Original article

The South African Municipal Workers’ Union (Samwu) has confirmed that it is insolvent and hasn’t been able to consistently pay salaries to staff since August last year.

Samwu’s new leadership, which was elected last week, said that the organisation’s savings appear to have been looted, forcing the union to survive from hand to mouth through monthly subscriptions from members.

Samwu has been in financial trouble for the past few years, with its former leaders – who were voted out through a motion of no confidence last week – suspected of having looted the organisation’s funds.

Newly appointed Samwu general secretary Koena Ramotlou said that things look bleak for the union, with all of the savings it depended on now depleted.

“What is disappointing, which members expect from us to act on, is that there are signs of money doing what it is not supposed to do and there is no trail of action of trying to recoup the money.”

The union has shed thousands of members in the past few years, seeing its income from members decline substantially.

Millions of rand were also spent on legal costs as the union defended itself from disgruntled members.

 

 

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